All Forum Posts by: Jerry Padilla

@Chonda M.

You can upgrade to a plus or pro account and try to sell in the marketplace here. Where is the property located? There may be agents in the area that can help you as well.

@Aristone Louxz 

It sounds like the only thing holding you back is your work history....... Do you have a two year history in your line of work, or in college working on your degree? It doesn't necessarily have to be the same place. 

I am glad to answer any financing questions you may have as well.

@Kyle Penland

Thank you for the mention! 

@Ryan S.

You should be able to go either FHA or conventional, if you are occupying the property.

FHA requires 3.5% down. If you are looking for little money down, than FHA is a great way to go.

Conventional financing requires 20-25% down even for a primary residence. 

@Frank Kratochvil

Getting pre-qualified for a mortgage is the first step. This will let you know what purchase price you can go up to. 

@Mark Graziano

Do you have a lot of equity built up in the property from the rehab? You can do a cash out refinance and a home equity line of credit to help you with the next down payment. 

@Alex Oak

I would also bring a pre-qualifying letter to show them you are ready to purchase.

@Michael Glenn I would also get pre-quailed for a mortgage before you start looking to see what you can qualify up to. 

Here is some info that may help you with conventional financing. 

You can borrow for up to 10 conventional mortgages, down to a price of 10k! You have the option of a 15, 20 or 30 year term.

For A Fixed Rate Purchase, Investment properties, Mortgages 1-4;

• A SFR requires a LTV of 85%
• A MFR requires a LTV of 75%
• A minimum credit score of 620

For A Fixed Rate Purchase, Investment properties, Mortgages 5-10;

• A SFR requires a LTV of 75%
• A MFR requires a LTV of 70%
• Minimum credit score of 720

Here are some answers to FAQ as well;

1. For all 1- to 4-unit investment property transactions, cash reserves equal to six (6) months PITI for the subject property are required.

Cash Reserves Required For Other Properties Owned by Investor;

• If the borrower has 1-4 mortgages, an additional two (2) months for every other SFR investment property and second home is required and additional six (6) months for every other 2-4 unit investment property and second home
• If the borrower has 5-10 mortgages, An additional six (6) months for every other investment property and second home.

2. Gift funds are not allowed on Investment property transactions.

3. Escrows for taxes and insurance are required unless otherwise approved by the underwriter.

4. Loans for investment properties are not eligible if the transaction includes non-arm’s length and/or at-interest characteristics

5. Investment property transactions cannot close in trust.

6. Maximum 2% sellers concessions is allowed!

@Calvin Dykhuizen

Welcome to the site! You have already made some great connections with @Shawn Holsapple this is a great site to build connections that are essential in the real estate market! I am always glad to answer any financing questions.

@Kevin Booker

When looking at property....... Keep in my mind that the house has to be in working order to be able to obtain financing. 

here are some guidelines to assist you......

For VA home loan purposes, a veteran is a person who has served or is currently serving on active duty in the United States Military or Coast Guard and who was discharged or released from active duty under conditions other than dishonorable. Un-remarried surviving spouses of an eligible service member who died as a result of service or service-related injuries may also be eligible.

ELIGIBLE PROPERTY TYPES

1 – 4-unit single family detached homes

PUDs

Townhouses

Condominiums—per VA guidelines

INCOME

In order to be considered for approval of a VA home loan, income stability is a mandatory requirement

Veterans recently separated from the service must have a minimum 2 year work history in the same line of work that he/she did in the service. The veteran should be in his/her most recent job for at least 12 months.

W-2s for the last two years

Signed Federal tax returns for the past 2 years for self-employed borrowers and rental income/loss

MAXIMUM FINANCED PROPERTIES

The maximum number of financed properties that the borrower(s) can have is four (4). However, the borrower must still have remaining VA eligibility for a VA loan.

GIFTS

A gift letter, source of funds and evidence of transfer of gift funds is required.

MAXIMUM LTV

100% for Purchase transactions
90% for Refinance transactions
100% for IRRRL Refinance transactions

MINIMUM CREDIT SCORE

For loan amounts </= $417,000, the minimum FICO score required is 600. For loan amounts > $417,000, the minimum FICO score required is 700.

MINIMUM LOAN AMOUNT

There is no minimum loan amount.

OCCUPANCY

Owner-occupied, primary residences are allowed. Second homes or investment properties are not allowed.

RESERVE REQUIREMENTS
If the loan amount is $417,000 or less and the borrower is not qualified with rental income, there are no requirements for cash reserves. If the borrower uses rental income to qualify or if the loan amount is greater than $417,000, six (6) months of reserves must be documented.

SELLER CONCESSIONS

Seller concessions include, but are not limited to, the following:

Payment of the buyer's VA funding fee

Prepayment of the buyer’s property taxes and insurance

Gifts such as a television set or microwave oven

Payment of extra points to provide permanent interest rate buydowns

Provision of escrowed funds to provide temporary interest rate buydowns,

Payoff of credit balances or judgments on behalf of the buyer

Seller concessions do not include payment of the buyer’s closing costs or payment of points as appropriate to the market.

Any seller concession or combination of concessions which exceeds 4% of the established reasonable value of the property is considered excessive, and unacceptable for VA guaranteed loans.